Cambodia has been placed on the watchlist of the Financial Action Task Force (FATF) due to its susceptibility to money laundering and terrorism financing.
On Friday, the Financial Action Task Force (FATF), a global money-laundering watchdog, placed Cambodia on its watchlist citing concerns that Phnom Penh is highly vulnerable to money laundering, said a high-level source from FATF.
The listing of Cambodia on the FATF’s “grey list”, which will be formally announced in Paris, is likely to curtail international financial, investment and trade flows to and from the Southeast Asian country.
The FATF is an inter-governmental organization that underpins the fight against money laundering and terrorist financing.
A spokesman for Cambodia’s Ministry of Economy and Finance stated he could not comment on the FATF issue and directed questions to the National Bank of Cambodia, which did not immediately respond to requests for comments.